 "Tata Chemicals posts 32% drop in Q2 profit on weak demand, prices")
Tata Chemicals Ltd on Friday reported a 28 per cent decline in consolidated net profit at Rs 495 crore for the second quarter of this fiscal year.
Its net profit stood at Rs 685 crore in the year-ago period.
Income from operations fell to Rs 3,998 crore in the July-September period, as compared to Rs 4,239 crore in the corresponding quarter of last year (Q2FY23).
"PAT (profit after tax) on a consolidated basis, stood at Rs 495 crore, for the quarter, as compared to Rs 685 crore in Q2FY23. PAT includes an exceptional item of Rs 102 crore," Tata Chemicals said in a regulatory filing.
As on September 30, 2023, the consolidated Gross Debt dropped to Rs 6,048 crore, as compared to Rs 6,296 crore as on March 31, 2023.
"The demand environment for soda ash in domestic markets in India and the US was stable. In other markets, softness was observed especially in container glass and flat glass sectors, leading to pricing pressure," R Mukundan, Managing Director & CEO, Tata Chemicals Limited, said.
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The company's market share in key markets have remained relatively stable by staying close to customers, he added.
"Our endeavour is to continue to maintain our market share through customer engagement and have steady contribution margins with focus on costs and higher value-added products. Our focus will also be to conserve cash and continue to deleverage.
"Looking beyond short-term, we expect the medium-term demandsupply situation to remain balanced driven by the sustainability trends especially for applications like solar glass and lithium," Mukundan said.
A part of the USD 150 billion Tata Group, Tata Chemicals Limited, is a leading supplier of choice to glass, detergent, industrial and chemical sectors.
The company has a strong position in the crop protection business through its subsidiary company, Rallis India Ltd.